Role of Exim Bank for Export Oriented Projects
-
Upload
arjun-srihari -
Category
Documents
-
view
72 -
download
1
Transcript of Role of Exim Bank for Export Oriented Projects
Role of Exim Bank for Export Oriented Projects
Presentation by
T C Venkat Subramanian
Managing Director & CEO
Exim Bank, Mumbai
Role of Exim Bank• Closely involved with two-way transfer
of technology, trade and investment. • Promotes international competitiveness
through a range of products and services at all stages of the business cycle: – Import of Technology, – Export Product Development, – Export Production, – Export Marketing, – Pre shipment, – Post shipment and – Investment Abroad.
Strengths of Exim Bank
– Multi-product, diversified organisation constantly striving to reach out to its customer,
– Functions as a facilitator, promoter and partner in quest for excellence, quality and growth.
– Products and services are tailored to meet the needs of different customer groups.• These include programmes for promoting joint
ventures and wholly owned subsidiaries abroad.
Internationalisation Efforts
– Seeks to develop commercially viable relationships with externally oriented companies in order to enhance their internationalisation efforts.
– Enables Indian companies to acquire assets to improve international competitiveness.
International Linkages
• Created a network of alliances with – multilateral agencies, – export credit agencies, – trade and investment promotion bodies,– commercial banks and – financial institutions
• Linkages helps to create an enabling environment to support two-way transfer of technology, trade and investment.
Facilitating Export Oriented Projects
• Participated in export development projects supported by the World Bank.
• Bank had administered an Agency Line of Credit from the International Finance Corporation for technological upgradation of small and medium enterprises. – This was followed by an unprecedented
direct line of credit from IFC.
Export Marketing Finance
• Exim Bank operates Export Marketing Finance (EMF) programmes
• Extends soft loans extended for implementation of strategic export development plans of Indian exporters in targeted industrialised country markets.
Export Marketing Fund
• EMF programme was first introduced in 1986 with an amount of US$ 10 mn - allocated by World Bank to Government of India for grant finance to export oriented firms.
• Finance by way of grants• 180 companies benefited from different
sectors of industry for their overseas marketing activities, including acquiring quality certification such as ISO 9001.
Export Marketing Fund II
• World Bank extended phase II of the programme through Exim Bank
• Finance to 119 companies. • After full commitment of the EMF-II
programme, Exim Bank launched the EMF-III programme in 1992 which included extension of loans and grants.
• Funds drawn from the Bank’s own resources.• The programme has helped a number of
Indian companies in obtaining a variety of quality certifications
To creating export
capability by arranging
competitive financing at
various stages of the export
cycle
From financing,
facilitating andpromoting
India’sforeign trade
To developingcommercially viablerelationships with a
target set of externallyoriented companies by
offering them a comprehensive
range of products and services, aimed at
enhancing theirinternationalisation
efforts
Evolving Vision
Enhances competitiveness through research studies
• Exim Bank periodically conducts studies on select sectors / markets which have export potential.
• Brought put a publication titled “Business Practices of Successful Indian Exporters”.– highlights the reasons for success of Indian
exporters in select sectors and delineate the business practices followed by them.
– This will help other firms to adopt suitable strategies in their globalisation efforts.
Financing of Export - Oriented Companies
Term Loans Guarantees Equity
Software Training Institutes
Minor Ports
Technology Parks
EOU Projects & TUFS
Financing of Export-Oriented CompaniesTerm Loans
Project Finance
Equipment Finance
Working Capital
Overseas Investment Finance
Long Termupto 5 years
Term Loans for 1-2 years
Loans to Indian companies for Equity Investment in their ventures overseas
Loans to Indian companies to onlend to their overseas ventures
Other Programmes
Export Marketing Finance
Export Product Development
Finance for R&D
Short Term < 1 year
Direct Equity stake
Range of Financing Programmes
Overseas Investment Finance
Loans to Indian companies for Equity Investment in ventures overseas
Loans to Indian companies to onlend to their overseas ventures
Examples : Packaging - Indonesia Denim Fabrics - Mauritius Fine Blanking Tools - UK Pharmaceuticals - U.S.A, Ireland Chemicals - Malaysia Glass Bottles - Sri Lanka Phosphoric Acid - Jordan, Morocco Shoes - Singapore Watches - Netherlands Laminated Tubes - China Software - U.S.A., Japan
Exim Bank - Your Equity Partner in Overseas Ventures
Export Marketing Finance• With increasing competitive environment, it is necessary to focus on
greater geographical dispersion through developing new markets
• Exim offers finance for export marketing to Indian companies to implement strategic export marketing plans and invest in supply side upgradation
• These may include desk / field research, minor product adaptation, participation in international trade fairs, overseas travel, training, product launch, brand promotion and investment in supply side upgradation
Examples * Knitting Needles * Polyester Ropes * Home Appliances * Auto Components * Herbal Products * Textiles * Bicycles * Software * Castings * Printing Machinery * Pharmaceuticals * Jute Products
Package for Software Exports
Project / Equipment Finance Working Capital Finance Software Training Institutes Overseas Investment Finance Product / Process Certification Export Marketing Product Development Research & Development
Finance for Export Oriented Companies
Range of Financing Programmes
Overseas Investment Finance
Loans to Indian companies for Equity Investment in ventures overseas
Loans to Indian companies to onlend to their overseas ventures
Examples : Packaging - Indonesia Denim Fabrics - Mauritius Fine Blanking Tools - UK Pharmaceuticals - U.S.A, Ireland Chemicals - Malaysia Glass Bottles - Sri Lanka Phosphoric Acid - Jordan, Morocco Shoes - Singapore Watches - Netherlands Laminated Tubes - China Software - U.S.A., Japan
Exim Bank - Your Equity Partner in Overseas Ventures
Export Marketing Finance• With increasing competitive environment, it is necessary to focus on
greater geographical dispersion through developing new markets
• Exim offers finance for export marketing to Indian companies to implement strategic export marketing plans and invest in supply side upgradation
• These may include desk / field research, minor product adaptation, participation in international trade fairs, overseas travel, training, product launch, brand promotion and investment in supply side upgradation
Examples * Knitting Needles * Polyester Ropes * Home Appliances * Auto Components * Herbal Products * Textiles * Bicycles * Software * Castings * Printing Machinery * Pharmaceuticals * Jute Products
Package for Software Exports
Project / Equipment Finance Working Capital Finance Software Training Institutes Overseas Investment Finance Product / Process Certification Export Marketing Product Development Research & Development
Finance for Export Oriented Companies
• Global Trade Finance Private Limited (GTF), a JV,
promoted by Exim Bank, with WestLB, Germany and
IFC, Washington, commenced business in September
2001.
• GTF’s objective is to promote market driven
export‑financing solutions for small and medium sized
Indian exporters (SMEs) operating in an increasingly
competitive world trade environment.
• GTF offers, for the first time in India, structured
foreign trade financing products such as forfaiting and
factoring.
New Initiatives
Agri Business Group: The Bank has put in place an ‘Agri Business Group’
The Group looks for viable projects and export transactions in agriculture sector.
The Bank has set up an agro-portal, in-house, which is an IT initiative to promote knowledge-based agriculture enterprise.
The Bank brings out a bi-monthly newsletter ‘Agri Export Advantage’ to facilitate information dissemination.
New Initiatives
Export Marketing Service for Indian Companies:
The Bank has launched a new initiative by way of
offering Export Marketing Service for Indian
Companies.
Bank’s network of overseas offices will play an active
role and the services will be offered to well reputed and
quality conscious Indian companies, particularly in the
SME sector, on a success fee basis.
The Bank will serve as a facilitator to help conclude
deals with buyers/importers overseas.
New Initiatives
• EXIM BANK : PROVIDES EQUITY FINANCE
• GUARANTEES FAVOURING BANKS OVERSEAS FINANCING JVS/WOS.• LOANS AGAINST INDIAN PROMOTERS’ LOANS TO JVS/WOS. ACTIVITIES
- Manufacturing - Marketing- Warehousing - Trading
Exim Bank supported setting up of number of overseas joint ventures :
* Sugar - Vietnam * Marketing - Netherlands* Fine Blanking Tools - U.K. * Knitting Needles - Malaysia* Phosphoric Acid - Jordan, Morocco * Watches - Netherlands* Software - U.S.A. * Denim Fabrics - Mauritius* Pharmaceuticals - U.S.A., Uganda
Joint Ventures Overseas
Export Marketing Services
• The Export Marketing services leverage the Bank’s high international standing, indepth knowledge and understanding of the international markets and well established institutional linkages to support a select group of Indian companies in their overseas marketing efforts on a success fee basis.
The Bank aims to promote India’s international trade.
The Logo reflects this. The Logo has a two-way
significance. The import arrow is thinner than the export
arrow. It also reflects the aim of value addition to exports.
Significance of Exim Logo